Capstone Wins Contract To Power Oil, Gas Sites

Capstone Turbine Corp. will supply microturbines to power multiple oil and gas sites in South America.

The 5.2 MW order consists of five C800 and two C600 Signature Series microturbines that are being deployed to three separate installation sites. Capstone said its microturbines were selected for their reliability to mitigate power outages, which result in the loss of millions of dollars in missing oil production. The microturbines will provide primary power, with the critical load being the compression systems at each site.

The microturbines will be fueled by associated gas, which is a natural byproduct of the oil production process. The microturbines are able to run on lower quality, minimally processed associated gas, which typically needs a great deal of treatment before it can be utilized as a fuel source, the company said However, Capstone’s microturbines are able to run on a wide range of fuels with various BTU content, requiring minimal treatment when compared to reciprocating engines, helping reduce the overall cost of the project while improving reliability.

Supernova Energy Services, a South American distributor for Capstone, secured the project.

“We are excited to see our multi-year sales effort result in a significant initial order for the oil and gas market in South America,” said Jim Crouse, executive vice president of Sales and Marketing of Capstone. “We expect to see oil and gas companies continue to look at total cost of ownership, reliability, and the impact on the environment as their primary criteria in selecting future power generation solutions, helping to drive Capstone as the desired solution.”

“As Brent crude oil prices continue to remain well above US$50 a barrel, we continue to see a rebound in our oil and gas business. This rebound combined with our expanding energy efficiency business is driving our year-over-year revenue growth,” said Darren Jamison, president and chief executive Officer of Capstone. “These units will eliminate the need for unreliable and environmentally unfriendly diesel engine generator sets to power the sites. Microturbines running on essentially free associated gas makes both environmental and economic sense, or said another way, provides customers with two shades of green. It saves money and is eco-friendly.”